Forex buffer rises to $102.4 B in 2023

The country's foreign exchange buffer increased by 6.5 percent to $102.45 billion in 2023 from $96.15 billion in 2022, ending two years of slump on the back of higher foreign borrowings by the national government and rising gold prices in the world market, according to the Bangko Sentral ng Pilipinas (BSP).

- LAWRENCE AGCAOILI

Preliminary data released by the central bank over the weekend showed the country's gross international reserves (GIR) level was higher than the $100-billion target set by monetary authorities.

The country's forex buffer declined to $108.79 billion in 2021 and further to $96.15 billion in 2022 after hitting an all-time high of $110.12 billion in 2020.

Last year's increase in forex buffer reflected mainly the national government's net foreign currency deposits with the BSP.

Last year, the Marcos administration borrowed $5.26 billion from the global debt market, higher by five percent than the programmed $5 billion.

Broken down, the initial $3 billion was secured through a triple-tranche global bond in January 2023. Another $1.26 billion from the first retail dollar bond ssuance was also secured in October 2023.

The remaining $1 billion was borrowed from the maiden issuance of sukuk bonds last month as the government moved to diversify the country's investor base.